LONDON – The Gartmore European investment trust, run by star manager Roger Guy, has told shareholders it faces a threat from activist hedge fund Carrousel Capital, which it says wants to restructure the fund.
The 396 million pound trust said in a circular that the ambitions of Carrousel, which owns 28.03 percent of the trust and is its largest shareholder, ‘remain unclear’ but that it had proposed putting three directors onto the trust’s five-strong board.
The trust also said Carrousel had, in informal talks, suggested restructuring it into an umbrella fund which could offer a range of investment mandates and which could take over or merge with other funds.
However, Carrousel has also recently told Gartmore European (GEO.L: Quote, Profile , Research) it plans to sell its shares by the end of the year, according to the circular.
“We have had a couple of meetings (with Carrousel), but we’ve been unable to get a clear idea of what’s being proposed,” Chairman Rodney Dennis said on Thursday.
